Ansoff Matrix:
Using the Ansoff Matrix one can see the alternative corporate growth strategies Kao may consider. Kao is seeking market development into Western markets with existing products. They are also seeking diversification into these new markets with new products that fit the unique needs of these consumers.
Recommendations on what the Organization should do to Improve its Competitive Position:
To improve its competitive position, Kao should continue to pursue expansion into Western markets. To do this, they may decide to expand by acquisition, as they have with the Jergens company. However, the Kao's unique way of doing business could give it a powerful advantage in the Western world. As such, they should utilize their acquisitions, such as Jergens, to learn as much as possible about the cultures in the Western world and develop products specific for these markets, as well as include the Eastern products that will fit well with these consumers.
As Mr. Kuroyanagi noted, Kao has set the stage for this expansion. They simply need to gather the human resources necessary to facilitate the expansion and make the move (Ghoshal & Butler,...
It is easily anticipated that by using their innovative strategies to market penetration and product development, Kao could become the leader in their industry, surpassing Proctor & Gamble and Unilever. This could lead to global domination and the ability to then enter into new complimentary industries to further their growth.
Conclusion:
In the end, Kao has an incredible opportunity in front of it, and they are well positioned to take advantage of this opportunity. Their innovative and unique organizational structure, which allows information and ideas to flow freely, has proven itself to be successful. If Kao continues their history of innovation and dedication, and acquires the needed human capital to facilitate international expansion, they are destined to become global leaders in their industry.
References
Ghoshal, S. & Butler, C. 2004, "KAO Corporation," in Strategy: Process, content, context, International Thomson Business Press, London, pp. 721-737.
